COMPUMEDICS ANNOUNCES FY2002 INTERIM FINANCIAL RESULTS
The interim result to December 31 2001 was highlighted by record first half operating revenues of $9.1 million, representing a 32% increase over the previous corresponding period.
Compumedics increased revenues in the important USA market by 139% to $4.6 million over the previous corresponding period despite the country’s well-documented difficulties. This growth reflects the continuing success of the establishment of Compumedics’ direct USA office. Asia Pacific also saw strong sales growth of 60% over the previous corresponding period resulting from growth in the Japanese market and the creation of new distributors in other parts of Asia Pacific. Europe’s sales fell due to a change to our resources in the territory, while Australian sales were marginally down reflecting the company’s high market penetration.
The company expects continued strong sales growth as it builds its own direct sales force in key markets. Although sales did not fully meet targets in the December half it expects the traditional skewing of sales to the June half to continue.
EBITDA was up 22.4% to $1.4 million over the previous corresponding period, assisted by an increase in gross margins from 62% to 69%. Overall profits after tax were $0.3 million due to slower than expected revenue growth for this period. Earnings per share for the period was 0.47 cents after adjusting for amortisation of intellectual property acquired.
Compumedics commitment to the development of its product range and growth platforms was highlighted by research and development expenditure capitalized at $1.3 million before R&D grant monies receivable. This represents 14.3% of operating revenues. Amortisation charge for intellectual property relating to the period was $0.7 million.
Inventories at $5.9 million were $0.9 million higher than in June reflecting strong production output in preparation for growing sales demand in the second half. Debtor days at December end were 190, comparable to June 2001, due to the high proportion of sales late in the period. Average debtor days over the period demonstrate an improvement.
David Burton Chairman and CEO, expressed his satisfaction with the numbers given the difficult circumstances the company encountered in its key USA market in the first half.
“The Company has delivered a first half consistent with its historical first half performance. Management is positioned to achieve the forecast numbers and is tracking performance closely,” stated Mr Burton.
Highlights of the results for the six months ending 31 December, 2001 include:
|6 months ended Dec 2001||6 months ended Dec 2000||Change %|
|Operating Revenue (A$’000)||9,058||6,884||31.6%|
|Total Revenue (A$’000)||9,159||7,182||27.5%|
|Earnings before Interest, Tax, Depreciation and Amortisation (A$’000)||1,449||1,184||22.4%|
|Earnings before Interest and Tax (A$’000)||650||838||(22.4)%|
|Profit After Tax (A$’000)||310||647||(52.1)%|
|Earnings Per Share (cents)||0.22c||0.71c||(69.0%)|
|Earnings Per Share (adjusted for amortisation of intellectual property acquired (cents)||0.47c||0.78c||(38.5)%|
US sales revenue of A$4.6m was 139% up on the previous corresponding period. The growth reflects the continuing success of the establishment of Compumedics’ direct USA office despite the events there in the first half, albeit at a slower rate than anticipated.
Sales revenue of A$1.1m were softer over the previous corresponding period. The European market development has been recently reinvigorated with the appointment of Mr. Marc Mossiman and this territory is now expected to strengthen.
Sales revenue in the Asian region of $1.9m increased 60% over the previous corresponding period. Growth in the Japanese market for sleep equipment as well as the establishment of new distributors in other parts of Asia Pacific account for much of this on-going growth in sales. Compumedics has also established a small direct office in Singapore to further reinforce its efforts in this territory, and expects on-going consistent growth.
Sales revenue in Australia of $1.5m was marginally lower over the previous corresponding period, reflecting the company’s high market penetration in the territory.
The Company is currently progressing a number of technology initiatives for release in the second half, they include:
Somté – CE and FDA submission
Introduction of Siesta EEG
Profusion PSG Version 2 and Profusion EEG Version 1
Various OEM derivatives of Somté
The Company continues to progress the underlying technology relating to its growth platforms through the application for patents and continued clinical testing. Further announcements regarding future developments will be made in due course.
Compumedics expects continued growth in demand for its products in the global sleep disorder market and associated fields.
Having historically achieved 38% of full year revenues in the first half the company has achieved 36.5% of full year operating revenues as forecast in the prospectus.
Management is positioned to achieving and focused on the forecast numbers and is tracking daily its performance against this.
Compumedics is a global leader in the development of medical technology for the diagnosis of sleep and associated disorders. Selling its products in over 20 countries worldwide, Compumedics was awarded the highly coveted Australian Exporter of the Year in 1998 and again in 2001 for the category of Small to Medium Manufacturer. In 1995, NASA chose Compumedics for two separate contracts involving the Space Shuttle and International Space Station Mission Preparations. Further to this, against considerable international competition, Compumedics was selected to supply sleep monitoring technology for the largest sleep study in the world, the US Government funded Sleep Heart Health Study. Compumedics began in 1987 when the Company developed and installed Australia’s first fully computerised and digital Sleep Clinic, prior to which time sleep studies in Australia were undertaken by physicians using chart recorders and manual analysis. Fifteen years on, Compumedics has achieved a 70% share of the Australian Sleep Diagnostic Market, with 80% of operating revenues generated from overseas markets.